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Insurance in Mexico: while driving Mexico
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Why buy Insurance in Mexico? Most tourists ask, "Why do I need to purchase Mexican insurance when a have US Insurance?" And the answer is quite simple: the U.S. insurance is not valid within Mexico. Mexico law requires that you purchase insurance through a Mexico company.
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 Some U.S. insurance companies offer insurance coverage in Mexico. However, the coverage is only for a short distance from the U.S. border (typically 25 miles) and for "infrequent" trips and this coverage does not satisfy Mexican legal requirements. At minimum, you need "Liability Only" Mexico insurance coverage. In Mexico if you are involved in an accident and fail to show proof of liability you can be detained and your vehicle impounded.
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It is very important to know that Mexican authorities don't recognize foreign insurance, so even if your US carrier says that you are covered, this will only aplly to your vehicle and will not cover any damages to third parties or property.
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There is a wide variety of coverages in the market to make sure that you and your vehicle will be covered in the event of an accident: Physical damage, total theft, liability, medical payments, legal assistance/bail bond, premier coverage, etc. And Insurance companies will offer daily, semi-annual and annual online Mexican auto insurance policies with a variety of options and coverage terms that you can choose to best suit your needs. With rates starting as low as $5/day you can't afford not to get your insurance.
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